The
National Futures Association (NFA) has ordered London-based introducing broker
Sigma Broking Limited to pay a $150,000 fine for alleged multiple compliance
violations, according to an NFA decision issued on May 28.
NFA Fines UK Introducing
Broker Sigma Broking $150,000
The
decision, handed down by an NFA Hearing Panel, found that Sigma Broking failed
to conduct required annual anti-money laundering audits in 2020, 2021 and 2022,
keep written pre-trade communications readily accessible, and properly
supervise its operations.
The Hearing
Panel’s decision was based on a complaint issued by NFA’s Business Conduct
Committee in February and a settlement offer submitted by Sigma Broking, in
which the firm neither admitted nor denied the allegations and agreed to pay a
fine of $150,000.
“Sigma
Broking acknowledged in its offer that any decision accepting the offer would
include findings that Sigma Broking committed the violations alleged against in
the complaint,” the NFA decisions said. “Further, Sigma Broking conditioned its
offer upon the hearing panel expressly acknowledging in any decision accepting
the offer that Sigma Broking provided NFA with evidence the firm completed its
2020 and 2023 AML audits.”
NFA orders London, United Kingdom introducing broker Sigma Broking Limited to pay a $150,000 fine https://t.co/EYG8AcpJ5L pic.twitter.com/FvTAgL2Qp1
— NFA News (@NFA_News) May 28, 2024
As an NFA
member, Sigma Broking is required to comply with the self-regulatory
organization’s rules and regulations. The NFA oversees the US derivatives
industry, including futures commission merchants, introducing brokers, swap
dealers, and other market participants.
Recent
Fines in the Financial Industry
In a similar case a few months ago, the
NFA imposed a fine of $140,000 on Braemar Securities, another London-based broker,
for alleged failures in meeting communication recordkeeping obligations and
improperly disclosing confidential customer information.
Another US
regulator, the Financial Industry Regulatory Authority (FINRA), has also been
issuing fines to firms in the financial sector. Finance Magnates recently
reported on a case in April where FINRA fined RBC Capital Markets for failing
to comply with trade confirmation regulations. The firm agreed to pay $375,000
as part of a settlement, acknowledging its shortcomings in providing accurate
and timely trade confirmations to customers.
A few weeks
prior to the RBC Capital Markets case, FINRA censured H2C Securities Inc. and
imposed a fine of $250,000 for failing to preserve and review over 1.25 million
business-related electronic communications between January 2013 and June 2021.
These communications were sent or received by H2C Securities’ associated
persons using four platforms made available by the firm.
These cases
highlight the importance of compliance with regulatory requirements in the
financial industry.
This article was written by Damian Chmiel at www.financemagnates.com.
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